New Delhi: A clutch of investors led by Multiples Equity have sought approval from the fair trade regulator CCI to acquire a 32% stake in luggage and travel accessories maker VIP Industries. The move came after Dilip Piramal and Family-promoters of VIP Industries-announced last week that they will sell up to 32% of their stake in the company, to Multiples Equity, an alternate asset management company.
Multiples consortium consists of Multiples Private Equity Fund IV (MPEF), Multiples Private Equity Gift Fund IV (MPGF), Samvibhag Securities, Caratlane founder Mithun Padam Sacheti, his brother Siddhartha Sacheti and Profitex Shares and Securities will acquire stakes in VIP Industries.
“The proposed combination relates to acquisition of shareholding by the acquirers(MPEF, MPGF, Samvibhag Securities, Mithun and Siddhartha Sacheti) in the target VIP Industries,” according to a notice filed with the Competition Commission of India (CCI) on Friday.
Multiples is an alternate asset management company. It focuses on core sectors of financial services, pharma & healthcare, consumer and technology, and Samvibhag Securities is a portfolio company of ace investor Akash Bhanshali.
In a notice to CCI, the consortium said that the “proposed combination will not lead to any change in the competitive dynamics, let alone cause any appreciable adverse effect on competition in India, consistent with the previous decisional practice of the… Competition Commission of India, delineation of a relevant market can be left open”.
On July 13, VIP Industries Ltd and Multiples Equity jointly announced that Dilip Piramal and Family have entered into a definitive agreement with the consortium to sell up to 32% stake in the company.
The move will also trigger an open offer to acquire 26% share from the open market, as per the Sebi’s takeover regulations by Multiples Equity-led consortium.
